What is the name of your state?What is the name of your state? FL
Hello:
Thank you for your help. My sister's husband died while on active duty in the military and I tried to help her with her tax return. Her son who is 10 years old recieves a payment from the militry as a survivor on a Form 1099-R. The IRS is saying that this is investment income and that the tax should be at the parents rate and also that we should file a Form 8615. I do not think that this is investment income to the child based on what I have read in the publications but I can not find anything specific about military survivors payments. Do you know whether they are correct or is there an exception to the rule for these types of payments. Thank you
Hello:
Thank you for your help. My sister's husband died while on active duty in the military and I tried to help her with her tax return. Her son who is 10 years old recieves a payment from the militry as a survivor on a Form 1099-R. The IRS is saying that this is investment income and that the tax should be at the parents rate and also that we should file a Form 8615. I do not think that this is investment income to the child based on what I have read in the publications but I can not find anything specific about military survivors payments. Do you know whether they are correct or is there an exception to the rule for these types of payments. Thank you